Twitter Rubbished Mass Layoff Reports Following Elon Musk Takeover

Twitter Rubbished Mass Layoff Reports Following Elon Musk Takeover
  • Twitter Inc TWTR confronted reports suggesting Tesla Inc TSLA CEO Elon Musk aimed to gut its workforce as part of his takeover.
  • Twitter told staff there had not been plans for companywide layoffs since it signed Musk's deal, Bloomberg reports citing an internal memo.
  • Musk's plan for Twitter reportedly involved downsizing its staff by 75%, reducing Twitter's staff to just over 2,000 people, compared with the 7,500 its current strength.
  • Also Read: Twitter-Elon Musk Deal Is On As The Social Media Company Locks Employee's Equity Award Accounts
  • Even if Musk does not purchase Twitter, the company plans $800 million in payroll cuts by the end of 2023, or about one-quarter of its workforce. 
  • Potential investors reportedly knew the plan for cuts, along with an effort to double revenue within three years. 
  • Twitter General Counsel Sean Edgett said discussions about cost savings and planning occurred earlier in the year. "Those discussions stopped once the merger agreement was signed," he said.
  • He had warned workers to expect "tons of public rumors and speculation" as the deal's closing neared. 
  • Price Action: TWTR shares traded lower by 4.61% at $50.02 in the premarket on the last check Friday.
  • Photo by Gerd Altmann from Pixabay

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